Non-Operating Oilfield Royalty Opportunity

Oilfield Royalty Co-Owner Opportunity

Quick Overview

Business is a proprietary, patent-pending coating applied to oilfield gauge lines that visually indicates water presence during tank gauging. The coating resets after drying, allowing repeated use without disposable water-detection pastes.

Business integrates directly into existing oilfield workflows and distribution channels with no new equipment, no behavior changes, and no operational disruption.

This opportunity is structured as a pure non-operating royalty co-ownership, with no working interest, capex, operational, manufacturing, or legal liability.

Manufacturer Engagement

We are actively engaged with a top-tier global oilfield manufacturer with substantial North American and international market presence.

The manufacturer has:

Reviewed technical integration and workflows

Agreed to proceed with coating refinement and manufacturability testing

Agreed to a licensing structure with upfront payments and ongoing royalties, contingent upon successful validation

Manufacturer identity and supporting materials are available under NDA only.

Royalty Economics (At Scale)

Target royalty: $40–$60 per unit

Estimated scale: ~50,000 units annually

Annual royalty potential:

$40 royalty → $2.0M total / $1.0M at 50%

$50 royalty → $2.5M total / $1.25M at 50%

$60 royalty → $3.0M total / $1.5M at 50%

Royalty projections reflect recurring demand, with additional upside from replacement sales.

Buyout Upside

Estimated post-commercialization IP buyout range: $8M–$12M+

Royalty co-owner receives 50% of all buyout proceeds

Risk Mitigation

Priority return of original royalty purchase price upon any buyout or IP sale

Pro-rata participation in remaining proceeds

No sale below a mutually agreed minimum valuation without co-owner consent

Structure & Price

Asking Price: $2.5M (one-time royalty buy-in)

Participation:

50% of all licensing royalties

50% of structured upfront payments

50% of any IP buyout proceeds

No operational, manufacturing, or legal liability.
Alternative structures may be considered.

Next Steps

Additional diligence materials, manufacturer communications, and technical details are available under mutual NDA.
Qualified parties are invited to request further information.